January 2023 - cypherpunks - lists.cpunks.org

The Fed, FDIC and OCC Issue New Warnings to Banks on Crypto Risks to Safety and Soundness
by Gunnar Larson 04 Jan '23

04 Jan '23

https://wallstreetonparade.com/2023/01/the-fed-fdic-and-occ-issue-new-warni… By Pam Martens and Russ Martens: January 4, 2023 ~ After multiple federally-insured banks involved with crypto have watched their publicly-traded stocks crater in price over the past year (see above chart); after a former Fed insider blew the whistle on what’s been going down as a result of the Fed’s hands off approach to policing crypto banks; after alleged fraudster operation, FTX, quietly bought a large stake in a federally-insured bank in the state of Washington; and after Senators Elizabeth Warren and Tina Smith sent a blistering demand for answers to the Fed, FDIC, and OCC on December 7 – those three federal agencies issued a new warning to banks yesterday on what life in the crypto lane could mean to their future. The warnings included the following: “The events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector. These events highlight a number of key risks associated with crypto-assets and crypto-asset sector participants that banking organizations should be aware of, including: “• Risk of fraud and scams among crypto-asset sector participants. “• Legal uncertainties related to custody practices, redemptions, and ownership rights, some of which are currently the subject of legal processes and proceedings. “• Inaccurate or misleading representations and disclosures by crypto-asset companies, including misrepresentations regarding federal deposit insurance, and other practices that may be unfair, deceptive, or abusive, contributing to significant harm to retail and institutional investors, customers, and counterparties. “• Significant volatility in crypto-asset markets, the effects of which include potential impacts on deposit flows associated with crypto-asset companies. “• Susceptibility of stablecoins to run risk, creating potential deposit outflows for banking organizations that hold stablecoin reserves. “• Contagion risk within the crypto-asset sector resulting from interconnections among certain crypto-asset participants, including through opaque lending, investing, funding, service, and operational arrangements. These interconnections may also present concentration risks for banking organizations with exposures to the crypto-asset sector. “• Risk management and governance practices in the crypto-asset sector exhibiting a lack of maturity and robustness. “• Heightened risks associated with open, public, and/or decentralized networks, or similar systems, including, but not limited to, the lack of governance mechanisms establishing oversight of the system; the absence of contracts or standards to clearly establish roles, responsibilities, and liabilities; and vulnerabilities related to cyber-attacks, outages, lost or trapped assets, and illicit finance.” The most pointed warning came in these two sentences: “Based on the agencies’ current understanding and experience to date, the agencies believe that issuing or holding as principal crypto-assets that are issued, stored, or transferred on an open, public, and/or decentralized network, or similar system is highly likely to be inconsistent with safe and sound banking practices. Further, the agencies have significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities or have concentrated exposures to the crypto-asset sector.” The wake-up call to the Fed and the two other federal regulators of banks was hastened no doubt from the recent statement from Justice Department prosecutor Damian Williams that the FTX crypto exchange (which had fraudulently lured customers with the promise of federal deposit insurance) was “one of the biggest financial frauds in American history.” According to congressional testimony from John Ray, the newly-appointed CEO of FTX, $8 billion of customers’ money is missing. Both Silvergate Bank and Signature Bank, featured in the chart above, had banking relationships with FTX. The FDIC had early warning that FTX was running a scam enterprise. On August 18 of last year – three months before FTX went belly up – the federal agency sent FTX US a letter warning it to stop falsely claiming its uninsured products were insured. The FDIC wrote: “It appears that on July 20, 2022, Mr. Harrison [then President of FTX US] published a tweet on the Twitter account, ‘@Brett_FTX,’ which stated, among other things, ‘direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users’ names,’ and ‘stocks are held in FDIC-insured and SIPC-insured brokerage accounts.’… “These statements appear to contain false and misleading representations that uninsured products are insured by the FDIC, as well as false and misleading statements about the extent and manner of protection provided by FDIC deposit insurance and misuse the FDIC’s name. These false and misleading statements represent or imply that FTX US is FDIC-insured, that funds deposited with FTX US are placed, and at all times remain, in accounts at unnamed FDIC-insured banks, that brokerage accounts at FTX US are FDIC-insured, and that FDIC insurance is available for cryptocurrency or stocks. In fact, FTX US is not FDIC-insured, the FDIC does not insure any brokerage accounts, and FDIC insurance does not cover stocks or cryptocurrency. The FDIC only insures deposits held in insured banks and savings associations (insured institutions), and FDIC insurance only protects against losses caused by the failure of insured institutions. Accordingly, these statements are likely to mislead, and potentially harm consumers.” You can read the full letter from the FDIC to FTX here. FacebookTwitterWhatsAppLinkedInEmail Bookmark the permalink. ← Two Law Firms Played Key Roles in Sam Bankman-Fried’s House of Cards; One Is Now Collecting Upwards of $2,165 an Hour in FTX Bankruptcy Proceedings © 2023 Wall Street On Parade. Wall Street On Parade ® is registered in the U.S. Patent and Trademark Office. WallStreetOnParade.com is a financial news website operated by Russ and Pam Martens to help the investing public better understand systemic corruption on Wall Street. Ms. Martens is a former Wall Street veteran with a background in journalism. Mr. Martens' career spans four decades in printing and publishing management. Dow Jones Industrial Average Intraday Trading Level, Stock Quotes and Breaking Market News Recent Posts The Fed, FDIC and OCC Issue New Warnings to Banks on Crypto Risks to Safety and Soundness Two Law Firms Played Key Roles in Sam Bankman-Fried’s House of Cards; One Is Now Collecting Upwards of $2,165 an Hour

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The secret eating away Wikileaks from within
by professor rat 04 Jan '23

04 Jan '23

Satoshi suspect, David Molnar, worked with Jake Appelbaum in 2008-9 - warned that WL was sending hornets towards ' us ' in 2010-11 and Jake then signed up as a WL cypherpunk in 2012. Correlation not causation without hard data but its possible WL knows who Satoshi is and the effort involved in stopping this huge secret leaking has further paralyzed operations. Also contributed to crypto donations sell-off. Certainly there is now enough OSINT to justify rendering Jake and Julian to a Black Site for sustained interrogation about this. Btc alone already justifies something like Carter Doctrine in case hostile powers try to utilize q-cracking to steal from early blocks. The ' missile gap ' leveraged by Kennedy to beat Nixon was not real. But China's present Q-computing lead is real. The West can mobilize resources effectively as the Ozone crisis and Ukraine invasion proved. Third times a charm.

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Karl - can youse show us on this map where the bad men groomed you for male slavery?
by professor rat 04 Jan '23

04 Jan '23

That's an excellent precis, Karl. I'm impressed by your progress since our last talk. I especially liked the truck, Dell, Facebook and cancer surgery details. Its perfectly understandable you don't tell us everything all at once - as you said many victims of digital analog rape are reluctant to discuss such a painful memory. Better be thought reticent and stoical - like a man instead of a eunuch. Yes? Do you still have the note you found in your mailbox? If you could scan that to us it would be a great help. As the wise anarchist said, " Cypherpunks are all about privacy for the poor victim and transparency for the powerful male slaver " Where there is injustice - there you will find us.

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Metal Gear Mark 2 as a Btc Core Dev/ Maintainer
by professor rat 04 Jan '23

04 Jan '23

Watching that thing in there gave me the idea C3-PO MARK TWO will make an excellent Btc core maintainer. I used to think an end run could be made around the Big Dog with a huge network giving away UBI to everyone. Now that idea looks more like the Confederate cavalry literally riding rings around the Union army. "Union’ logistics now resemble the net itself. A force so strong, and dynamically balanced, that no combination of earthly powers can defeat it. " . . . another (and far more credible) person thought a while, and in a proud revelation suggested that one way that the establishment would “fight back” is to convert to a government that is based on fully decentralized authority, as opposed to the leader-centric system we have today. Such a system could not be attacked by killing individual people, any more than you can kill a tree by pulling off a single leaf. His “solution” was, in effect, to totally disband the current government and turn it over to the public at large, where it highly de-centralized system that is not controlled by a tiny fraction of the population in a structure called a “government,” essentially identical to his idea. So in effect, the only way the government can survive is to totally surrender. . ."

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Matt Damon's ' Brave " ad one of the longer suicide notes in history
by professor rat 04 Jan '23

04 Jan '23

>>> Marszalek added that his early partnership with Visa had put him ahead of the industry on compliance with anti-money-laundering (AML) statutes, and on this point, Sanders agreed: “From an AML perspective, I think they’re doing a good job. That’s a rare compliment from me.” <<< https://www.gq.com/story/crypto-dot-com-explained blockchain analysis, security, and cyber investigative services for fraud victims, law firms, businesses, and governments. https://www.linkedin.com/in/richasanders Reposts not deadpools on Hollywood dropkicks yet just wait five minutes blackbriar

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Stephen Witt has coprophagic cop written all over his sorry face
by professor rat 04 Jan '23

04 Jan '23

Exhibit A for this Conde Nast ' Arsehole ' - If I called him a wit I might be half-right. https://www.npr.org/sections/therecord/2018/02/12/585110447/tech-utopianism… Reposts not police-force-approved, crypto-wars revisionism

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[ot][spam][crazy][crazy][crazy] neuron sqrt
by Undescribed Horrific Abuse, One Victim & Survivor of Many 04 Jan '23

04 Jan '23

Greetings from the wild world of neurons and blood oxygen economics! I am here to ask you: What is _your_ square root?

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[ot][crazy][spam] squares
by Undescribed Horrific Abuse, One Victim & Survivor of Many 04 Jan '23

04 Jan '23

i imagine a square object with separate corners i am thinking maybe a wireframe designer from the 90s, maybe blender a little we cane move those vertices along orthogonal axes, and the shape adjusts shape have interesting properties, and we might consider some of them in a larger world, such shapes might be used in larger contexts

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Sam Bankman-Fried Asks Judge to Keep His Bail Guarantors Secret
by Gunnar Larson 03 Jan '23

03 Jan '23

Sam Bankman-Fried Asks Judge to Keep His Bail Guarantors Secret https://www.bloomberg.com/news/articles/2023-01-03/sbf-wants-to-shield-info…

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Re: response to NY FOIL request FOIL-2022-092039-018433
by Gunnar Larson 03 Jan '23

03 Jan '23

Dear Bogdan: Thank you for your email. We would like to kindly appeal this decision. Please find a copy of the corresponding financial disclosure form, that was also included in the FOIL request: https://drive.google.com/file/d/1m1-ikLnjkr7lwt2pKqIxnnUKkgzBz7dh/view?usp=… Question 4(a), "Positions of Authority" lists an advisor role at "Brex, Inc." Furthrtmore, the role's "State or Local Agency" is indicated as "DFS." Our request is not intended to be vague, however, we seek records specific to the DFS role with Brex, Inc. Sending you the very best regards. Thank you, Gunnar Gunnar Larson xNY.io - Bank.org 646-454-9107 On Thu, Nov 3, 2022, 3:17 PM <George.Bogdan(a)dfs.ny.gov> wrote: > Dear Mr. Larson: > > My response to FOIL #2022-092039 is attached. > > Sincerely, > George Bogdan > DFS Records Access Officer > > Tracking Number:FOIL-2022-092039-018433 >

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